Trade Finance Forum › Forums › Market Regulations › Laws and Bills › How do new trade tariffs and agreements affect trade finance companies? › Reply To: How do new trade tariffs and agreements affect trade finance companies?
As far as I know, trade finance firms may be significantly impacted by the current shifts in tariffs and trade agreements. Tariffs may make imported items more expensive compared to those manufactured at home. As a result, there may be less of a need for trade finance services. Changes to trade agreements, on the other hand, might open up hitherto unrealized trade prospects and may boost the market for trade financing. Trade financing businesses may also need to adapt their risk management procedures due to tariff and trade agreement changes. It’s a tricky situation that changes depending on details like the sectors involved and the tariffs or agreements in place.